Market Potential

1. TOWARDS
In partial fulfilment of the requirement of
MASTER OF BUSINESS ADMINISTRATION
In
Rani Duragvati Vishwavidyalaya Jabalpur
MBA IVth Sem. (Session 2011-13)
Enr. No. BA/7459 Roll No.094954

2. The Indian economy is still quite
relevant on agriculture and it
contributes nearly 14% of the
country’s gross domestic product
and almost 60% of the
population is dependent on
agriculture.
The trend of organic food that was
initiated in the developed regions.
Europe and North America are the
largest consumers of organic food,
however, the organic food market in
Asia is likely to account for the highest
growth rate over the coming years.
Organic Floriculture
Organic Wheat Crop

3. Organic foods are produced
through systematic farming
methods that do not involve any
usage of pesticides and harmful
chemicals for production. India
has around 4.2 Million hectares of
land which is certified for organic
farming.
Increasing awareness towards
nutritious and healthy food and
changing lifestyle are aurging the
demand for organic food,
particularly across the metro cities.
Majority of the demand for
organic food is being contributed
by cities such as Mumbai, Chennai,
Delhi, Gurgaon, Bengaluru and
Pune.
Community based Organic Farming

5. M.P. Vindhya Jaivik Herbal Development
Foundation established as a Public Private
Partnership (PPP) venture by MP Govt. in August
2005 with the following objectives :
 To Promote Organic Farming.
 To reduce the role of Middle man in agriculture.
 To Develop Organic Agri Export Zone .
 To Enhance India’s Agro Export.
 To Enhance the Living Standards of Farmers.
 Improve the Health of people by providing Good & Quality
Product.
 To Develop a Chain of Technology-Production & Market.

7. Market Potential : The capacity of a location,
such as a country, to become or to grow as a
demander of goods and services that outside
suppliers might provide. Various measures of
market potential are provided especially for
emerging economies, intended as guides to
exports and foreign direct investment
 To make entry / exit decisions
 To make resource level decisions
 To make location and other resource allocation decisions,
 To set objectives and evaluate performance as an input to
forecast.

8. Strengths Weaknesses
 Wide variety of fruits and vegetables and other
commodities can be grown organically.
 Very less consumption of chemicals in India as
compared to developed nations. These areas can be
turned into organic.
 Organic pockets existing in different parts of the
country
Differentiation can be easily created
 Rising interest of farmers as well as Government
interests in Organic farming
 Various niches in fruits & vegetables can be created
 Increasing investments by Indian corporate firms in
agribusiness and specially in Organic farming
 Short shelf life varieties
 Lack of farmer awareness about agricultural
practices, products and technologies for Organic
farming
 Price competitiveness
 Lack of market information and intelligence
 Lack of Global market research
 Inadequate post harvest management and related
specialized infrastructure to support Organic food
production
 Lack of R& D in Organic food production
 Unavailability of inputs used in the system
 Certification and labeling
 Less access to international market
Opportunities Threats
 Favorable Government vision
 WTO offering global opportunities
 Price –premiums in different markets
 Export opportunities in new product/market (section
)
 USA, Europe and Japan are rising markets
 Branding offers new opportunities for differentiation
 Rising demand for Organic products
 Big retail stores/chains coming up
 New developments in post harvest technologies.
 Private sector keen to join Organic value chain
 Competition from domestic industry.
 Threat from imported products.
 Non-tariff barriers may be imposed by developed
nations

9.  People are much more conscious to their health nowadays.
 Consumer do have demand for pure, natural and holistic food
products.
 Producers also shown that they are willing to go through organic
farming system.
 Govt., regulatory authorities, corporates, non-government
Organizations etc. are also promoting and supporting such market.
 There are huge market possibilities in future for Organic Food
Products as well as are Organic agro inputs for farming activities.
 Organic market is a future scope of entire food industry, have global
demand, have local requirement and have a national opportunity.
The demand for organic products is growing fast (@20 percent per
annum in the major developed countries). The organic food market
in India is expected to grow at the AGR of around 19% during 2012-
17. After the research, I found following points regarding market
potential for organic food Products in Indian Market, –

10.  Recent Primary data was not found, as very little awareness is in
market regarding organic food products.
 Sample size of 500 consumers over internet blogs , social net-
workings and personal interviews, do not frame 100% righteous
picture on table.
 The findings has been framed out from the questionnaire hence
it is dependent on the responses , hence in a limit.
 Major part of research is based on research reports, thesis
presented and Statistics of Govt. sources, that may some time
right or may be malfunctioned.
 Extensive Media Coverage and advertisement required for
promotion & Expansion of Organic Products.